Mortgage During Chapter 13 Bankruptcy
You may not have to wait for your plan to end. FHA and at least one VA program allow a loan once 12 months of the plan have passed, with on-time payments and court approval.
What you need while still in the plan
Each item below is a requirement of FHA or at least one other program we offer.
- At least 12 months of the plan’s payout period have passed.
- Every required plan payment in the last 12 months was made on time.
- Written permission from the bankruptcy court to take on the mortgage.
- The events that led to the bankruptcy are not likely to happen again.
- On FHA, this rule is part of the manual underwriting standards.
- Bankruptcy documents, if the credit report does not show the details needed.
No need to wait for discharge
Court approval is the key
On-time plan payments
VA refinance in the plan
Fannie Mae after discharge
Non-QM options too
Can You Get A Mortgage In Chapter 13
Yes, with FHA or at least one VA program, once you are 12 months into the plan. Fannie Mae conventional loans mean waiting until after discharge.
A Chapter 13 bankruptcy does not rule out an FHA loan. If at least 12 months of the payout period have passed, your plan payments are on time, and the bankruptcy court gives written permission, you can apply before the plan ends.
At least one VA program works the same way, with approval from the trustee or the bankruptcy judge, and at least one allows a VA streamline refinance while the plan is active. Rebuilding after a foreclosure or short sale instead? See our recent credit event page.
Fannie Mae conventional loans follow a waiting period: two years from the discharge date, or four years from the dismissal date. With documented extenuating circumstances, a dismissal can drop to two years. At least one non-QM program allows a loan 12 months after a bankruptcy on a purchase or rate-and-term refinance.
Why choose Saxton for a mortgage during Chapter 13
For homeowners and buyers partway through a Chapter 13 plan who do not want to wait for it to end.
No Need To Wait
FHA does not require your plan to be finished. At least 12 months of the payout period must have passed when the FHA case number is assigned.
Court Approval Is Key
FHA needs written permission from the bankruptcy court to enter into the mortgage. At least one VA program accepts approval from the trustee or the bankruptcy judge.
On-Time Plan Payments
All required plan payments in the most recent 12 months must be on time, and the lender must find that the events behind the bankruptcy are not likely to happen again.
VA Refinance In The Plan
At least one VA streamline refinance program accepts borrowers in an active Chapter 13 with documented permission from the court or trustee, and no late payments on the current mortgage in the last three months.
Fannie Mae After Discharge
Fannie Mae loans need two years from discharge or four years from dismissal. Fannie Mae’s automated system gives an ineligible result on an open Chapter 13 filed in the last four years.
Some Programs Say No
At least one jumbo program does not allow more than one bankruptcy and waits seven years from discharge or dismissal. We match you to the program that fits.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about getting a mortgage during or after Chapter 13.
Yes, with FHA or at least one VA program, once 12 months of the plan have passed and your plan payments are on time. FHA requires written permission from the bankruptcy court, and at least one VA program accepts approval from the trustee or the bankruptcy judge.
FHA needs written permission from the bankruptcy court. At least one VA program accepts approval from the trustee or the bankruptcy judge.
On a Fannie Mae loan, two years from the discharge date. There are no exceptions to that two-year wait.
A Fannie Mae loan needs four years from the dismissal date, or two years with documented extenuating circumstances.
At least one VA streamline refinance program allows it with documented permission from the bankruptcy court or trustee, and no late payments on the current mortgage in the last three months.
A Fannie Mae loan needs five years from the most recent dismissal or discharge if you had more than one filing in the past seven years, or three years with documented extenuating circumstances. At least one jumbo program does not allow multiple bankruptcies.
Yes. At least one program allows a loan 12 months after a bankruptcy on a purchase or rate-and-term refinance, and others wait two years or longer.
Find out what you qualify for
Tell us where you are in your Chapter 13 plan and what you want to do, and we will show you the programs that fit.
Get Pre-QualifiedLoan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.